Analyst Estimates: Here's What Brokers Think Of ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) After Its Yearly Report

As you might know, ADNOC Drilling Company P.J.S.C. (ADX:ADNOCDRILL) just kicked off its latest full-year results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 3.7% to hit US$4.0b. Statutory earnings per share (EPS) came in at US$0.081, some 2.9% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for ADNOC Drilling Company P.J.S.C

Taking into account the latest results, the current consensus from ADNOC Drilling Company P.J.S.C's 14 analysts is for revenues of US$4.77b in 2025. This would reflect a decent 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 7.7% to US$0.088. Before this earnings report, the analysts had been forecasting revenues of US$4.61b and earnings per share (EPS) of US$0.087 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of د.إ6.18, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ADNOC Drilling Company P.J.S.C analyst has a price target of د.إ6.80 per share, while the most pessimistic values it at د.إ5.01. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting ADNOC Drilling Company P.J.S.C's growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ADNOC Drilling Company P.J.S.C to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at د.إ6.18, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ADNOC Drilling Company P.J.S.C going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for ADNOC Drilling Company P.J.S.C you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.